A Good Article For TFSA 'Newbies' | Tax Free Savings Accounts | Discussion forum

I agree.

Obviously hasn't seen the Fareed Ahamed TFSA Tax Court ruling that was discussed a few months ago or the thread CRA targeting successful TFSA investors.

The preferred tax treatment of capital gains and dividends is not zero taxation.

It is better to tax shelter the higher return of the capital gains and dividends from stocks and pay the taxes on the lower return from GIC's and savings accounts.

I actually know how capital gains, dividends, and interest are taxed.

I also understand that it is poor tax planning to expend TFSA and RRSP contribution room to shield the 3% to 4% interest and 0% capital gains from GIC's and bonds from taxes while leaving the 5% to 6% dividends and the future capital gains from a utility stock exposed to taxation.

Knowing how different kinds of investment gains are taxed is not enough. That superficial analysis leads to myths like keeping dividends and capital gains outside an RRSP is better than having them in an RRSP. The full lifetime calculations show that myth is not really the case.

fat_dog said

It great you know how capital gain and dividends are taxed . But as they say every thing you see on the internet might not be true !

And I am sure their are many calculator on the internet that say many things for many reason .

You needed to do the calculation yourself . Not depend on online calculator to do so

Like have tax software to do you taxes . You do not really know the formulas used to calculations tax

These kind of differences between working it out yourself . Or finding some calculator that
gives you the answer you like

The diffuseness between us is what makes a market . Once again good luck  

I have not done my tax using pen and paper for the last decade plus, and yet I understand how different investment are being taxed. Whether doing a tax return manually or not is irrelevant to one's understanding of our tax system.

There is no one sure win investment allocation between registered vs non registered account. Unless you know with 100% certainty how the rest of your life will look at, which includes life expectancy, health issues, investment return, employment profile, CPP changes, OAS changes etc etc. Its way more complicated than the simple interest income being 100% taxable, capital gain and dividend have preferential tax treatment that you seem to solely focus on.

fat_dog said
... the fact is

that dividend and capital gain . Get preferential tax treatment . Out side a rrsp and tfsa . That interest income dose not that is a fact  

So you'd rather pay tax on a 20% capital gain than on a 5% interest payment?

fat_dog said
that dividend and capital gain . Get preferential tax treatment . Out side a rrsp and tfsa . That interest income dose not that is a fact  

You are just saying the obvious. Does not mean one is better than the other, as you are also confirming. We just wasted band width for nothing 🙂

fat_dog said
It is my understanding that a person can have multiple Handel on the board . So it may look
like a different members . is that the case with you ?

They say that if you are not paying for some thing on the internet you are the product

are you an advertiser . Do you benefit from theses myth . you propagate ?

It just that it is hard to watch fake news . Or self serving advice for advertises pretending to be members . Their is no benefit in this for me

I would ask other members what the benefit is for advertises on the board .
And you will have your answer as to why it is so important to theses other
 

Not sure if these comments were a response to my post #14 or if they were aimed at someone else. I'll just assume it was me - and I'm not an advertiser, nor am I the alter-ego of anyone else. Just because you don't agree with something doesn't make it a conspiracy.

I know I don't have the street cred on here like someone like Norman1 does, so I don't really expect you to respect what I'm saying. But you could at least have a look at the work that Norman1 has referred you to. Put pen to paper and prove it wrong before disparaging his efforts.

I can tell you that I have benefited from what you call a "myth" in my personal experience with equities in a TFSA. I didn't get the preferential tax treatment but I did get a higher after tax return overall. Your strategies may be different and have different results. And the change in attractiveness of the yields of GICs certainly alters the calculation.

To try to bring this discussion back to the original intent, there are various ways for one to invest in their TFSA based on their goals, risk tolerance, etc. Tax planning plays a role but is not going to be of maximum benefit if you don't want to look at it from all angles.